Are We on the Brink of Escalation?
At Easter, reports circulated that China had crossed the unofficial border with Taiwan by water and air. One reason for China’s increasingly aggressive behavior may also be the supply restrictions on high-tech semiconductors imposed by the USA in 2022 under the Biden administration. The embargo aims to technologically isolate China.
China Needs Taiwan's Semiconductor Production
Unlike China, Taiwan can produce semiconductor products using the latest state-of-the-art technology. And this is precisely what likely further fuels China’s appetite for the island. The conflict is intensifying—a circumstance that the USA and the EU appear to accept willingly with their embargo.
Supply Halts for Rare Earth Intermediate Products
In general, it can be assumed that dependence on China for rare earths and their refinery products will be broken in around 5 years. The government in Beijing is also aware of this. For this reason, the Politburo is currently no longer imposing supply freezes and tariffs on the critical commodities extracted from the mines, but on processed products such as wafers and solar technology. But even this monopoly is unlikely to last. The EU is currently subsidizing the further development of the very latest technologies in various key industries to the tune of many billions. As a result, Europe is also becoming less dependent on China for end products, meaning that its market power is increasingly dwindling. Despite the break-up of monopolies, demand is growing faster than supply. Price jumps of up to 30 % are to be expected. Golden times could await investors, but they should not wait too long.
Warren Buffett Sells His Shares in Taiwan Semiconductor Manufacturing
The legendary investor Warren Buffett has sold a large portion of his shares in Taiwan Semiconductor Manufacturing. When asked why he did this, he only gives evasive answers. The Oracle of Omaha certainly seems to have a bad feeling. Do we need to panic now because of the Taiwan crisis? In our view, that would not help anyone. However, where Buffett is definitely right in our opinion is with his rule of “not losing money.”
New Interview: How Private Investors Purchase Technology Metals and Rare Earths
Those who purchase technology metals and rare earths are prepared for all eventualities of the Taiwan crisis. Furthermore, a physical investment protects against inflation and currency devaluation. In an interview for Wirtschaft TV, raw materials specialist and financial analyst Andreas Kroll explains how private clients can purchase critical metals and which are currently most important:
Because security is very important, especially with physical investments, Andreas Kroll also explains to moderator Sascha Oliver Martin the advantages of digital fund usage control. With this, providers of critical metals grant their customers unprecedented protection of the investment asset, thereby setting a new standard in consumer protection.